The federal government has come up with stringent conditions for holders of national prize bonds worth Rs. 40,000. The owners can no longer sell their bonds from now on nor can they encash or redeem these after March 2020.
These measures were taken by the government to promote the registration of prize bonds of Rs. 40,000 which are misused extensively as an alternate currency or as undeclared or black money for the purpose of money transactions and avoiding taxes.
Hence, the government made its registration necessary for its owners and announced to discontinue its draw for an indefinite period, according to instructions issued by the State Bank of Pakistan (SBP). Exploitation of high denomination prize bonds was repeatedly identified by the central bank in its various reports.
It is estimated that the worth of all prize bonds stands at over Rs. 940 billion in which the share of prize bond of Rs. 40,000 is nearly Rs. 600 billion.
Prize Bonds of Rs. 40,000 Can Be Converted Into Saving Products
The bondholders shall have the following options to replace these bonds:
1. Conversion to Premium Prize Bonds (Registered).
2. Replacement with Special Saving Certificate (SSC)/ Defence Savings Certificate.
The bonds can be converted to Premium Prize Bonds through the 16 field office of six commercial banks including National Bank of Pakistan, Habib Bank Limited, United Bank Limited, Allied Bank Limited MCB Bank and Bank Alfalah Limited. Also, bonds could be replaced through branches of National Saving Certificates.
The method to convert prize bonds includes the submission of a written application by its holders for Premium Prize Bonds. The application forms are available here.